(EnergyAsia, May 30, Friday) — India’s northern states are beginning to experience diesel shortages, with downstream oil firm Bharat Petroleum reporting growing delays in supplying its retail outlets.

The shortages have coincided with the arrival of more diesel-powered vehicles on the roads and growing demand from industry which is using diesel as a cheaper alternative to naphtha and fuel oil.

Ironically, it is taking place just as India’s private oil companies Reliance and Essar are revving up production at their export-oriented refineries in Gujarat state. Local politicians said these fuel exports appear to be adding to India’s domestic shortages.